The Horrible Year of the Textile Giant: From 4,000 Workers to Only 35, Zero Core Revenue, Chairman Receives Zero Compensation

Once a major player in the textile industry in Ho Chi Minh City, Garmex Saigon used to generate billions in annual revenue. However, setbacks with the industry giant Amazon, along with the general challenges faced by the sector, have left Garmex Saigon in dire straits.


GMC Corporation of Saigon (GMC) has just announced its consolidated financial statements for the fourth quarter of 2023.

It was observed that the company’s net revenue was only 134 million dong due to the lack of orders, while in the same period of 2022, it still recorded nearly 17 billion dong. The main source of revenue in this quarter comes from service revenue. Despite the cost reduction efforts, the company continued to report a loss of nearly 8 billion dong in the last quarter of the year.

Accumulated throughout 2023, Garmex’s revenue reached only 8.6 billion dong, a 35-fold decrease compared to the same period. The after-tax loss was nearly 52 billion dong. Thanks to the provision of support funds for job loss of more than 20 billion dong in 2022, the company’s loss in 2023 improved by nearly 40% compared to the same period last year.

Garmex was affected by the chain reaction from Gilimex’s sudden reduction in production capacity by Amazon Robotics LLC, despite investing in facilities and inventory. Gilimex is currently Garmex Saigon’s main customer.

According to the company’s management board, the business situation is unfavorable, and if production is maintained at the garment factories, the company will incur significant losses. Therefore, the company restructured its workforce, reduced labor, and temporarily suspended production to minimize damages.

The company has rebalanced its personnel, narrowed its operations, implemented cost reductions, and reviewed assets, seeking opportunities to efficiently exploit existing premises or liquidate unused assets. In addition, the company has diversified its business to avoid risks.

After a “disastrous” year, Chairman of the Board of Directors Nguyen Viet Cuong of Garmex Saigon did not receive a bonus. Members of the Board of Directors received an average of 60 million dong per person, while CEO and CFO Nguyen Minh Hang received a bonus of nearly 950 million dong.

Currently, Garmex Saigon has not rehired workers for traditional business lines. Whether the company will invest in restoring the garment industry depends on the market situation.

As of the end of 2023, the company’s total assets amounted to over 410 billion dong, a decrease of nearly 22% compared to the beginning of the year. Inventory accounted for nearly 95 billion dong. Notably, Garmex’s cash balance is only 29 million dong, and short-term bank deposits are over 26 billion dong. Debt payable is at nearly 27 billion dong.

Garmex Saigon is a well-known garment manufacturer in Ho Chi Minh City, established in 1976. The company has 5 factories including An Nhon, An Phu, Binh Tien (HCMC), Tan My (Ba Ria – Vung Tau), and Quang Nam with a total area of over 10 hectares, including 70 production lines.

In 2004, the company was officially equitized, of which 10% was state-owned capital. The company was listed on HoSE with the stock code GMC on December 22, 2006.

Throughout its operation, Garmex Saigon has received many cups, commendations, medals, and awards. In particular, in 2013, exactly a decade ago, GMC was honored to receive the Third-class Labor Medal for its achievements in production and business activities and caring for the lives of workers. In the same year, Garmex Saigon was also voted by Forbes Vietnam magazine as one of the 50 Best Listed Companies in Vietnam.

For three consecutive years from 2018 to 2020, GMC won the TOP 5 award for good company management among small and medium-sized companies.

Once a major player in the textile and garment industry in Ho Chi Minh City with annual revenue reaching trillions of dong, but the incident with “giant” Amazon and the general difficulties of the industry have put Garmex in dire straits: almost all the workforce has been slashed, leaving only 35 people, a reduction of 1,947 employees compared to the beginning of the year. In total, the company has cut about 3,775 employees in the past two years.

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